Policy for Risk-based Pricing Regs

A policy for risk-based pricing can, and probably should, be a part of your loan policy because that is the resource document to which lenders turn. The notice requirement should be connected to the policy on pricing. Any lender that uses risk-based pricing should have clear policy guidelines on how risk is measured and how pricing should be set. A policy on risk-based pricing notices flows naturally from this, so the short answer to your question is "yes." You should address this in policies.

First published on BankersOnline.com 7/05/10